Our Mandate

To make recommendations to Parliament, provincial legislatures, organised local government and other organs of state on financial and fiscal matters as envisaged in the Constitution and other national legislation.

Our Vision

Our Mission

To provide proactive, expert and independent advice on promoting a sustainable and equitable IGFR system, through evidence based policy analysis to ensure the realization of our Constitutional values.

Recent Publications

2017/2018 Annual Report

2017/18 Annual Report

The Annual Report is presented in terms of the provisions of Section 222 of the Constitution 1996, sections 40 and 65 of the Public Finance Management Act, 1999 (Act No. 1 of 1999) (PFMA) (as amended) and section 26 of the Financial and Fiscal Commission Act, 1997 (Act No. 99 of 1997) (as amended). During the year under review the Commission fulfilled its mandate as a constitutional body in promoting a sustainable and equitable intergovernmental fiscal relations system. The Commission ensured timeous delivery of its constitutional and legislative submissions through tabling in parliament: Division of Revenue; Response to the Medium Term Budget Policy Statement (MTBPS); Response to the Division of Revenue Bill(DoRB); Appropriation Bill; and Response to the Fiscal Framework and Revenue Proposals.Click here to download this document (PDF:5Mb)

2019/2020 Submission for the Division of Revenue

2019/20 Submission for the Division of Revenue

The 2019/20 Financial and Fiscal Commission’s submission is about the difficulties of sustaining equitable economic growth in the face of a constrained fiscal environment. Under the theme of Re-engineering the intergovernmental fiscal relations system for national development in a fiscally constrained environment, focus is on an extensive review of the performance and effectiveness of current intergovernmental fiscal instruments. The submission recommends how fiscal instruments can be re-engineered to better address the eradication of poverty and thereby the reduce inequality. This submission continues with the theme of the 2018/19 Division of Revenue submission with similar assessments of other areas of public finance issues. It reviews the effectiveness and performance of the current intergovernmental fiscal relations (IGFR) system, and makes recommendations to re-engineer current fiscal instruments, incentives and measures to address challenges that may be preventing the achievement of the NDP’s objectives.

Potential Financing Options for Large Cities

Policy Brief 11 - Potential Financing Options for Large Cities

In South Africa large cities face a myriad of challenges including rapid urbanisation, poverty, inequality, unemployment and huge infrastructure needs. Although these are not unique to large cities, the magnitude of the challenges in large cities is greater and is increasingly becoming a major risk to the socioeconomic development of the country. The ability of cities to deal with these challenges depends, to a large extent, on their ability to generate more of their own revenues. As transfers and own revenues for large cities are heavily constrained, it is critical that cities leverage non-traditional and other innovative financing mechanisms. This policy brief summarises the findings of a study that evaluated different non-traditional revenues sources for South Africa’s large cities. Findings from the study suggest different options to enhance borrowing for large cities as well as strategies to improve public private partnership (PPP) deal flows in large cities. In addition, the study brings to the fore the value of land value capture mechanisms.

How the Cost of Information and Communication Technology Hampers Implementation of Financial Management Reforms in Lesser-Resourced Municipalities

Currently South Africa has 278 municipalities with varying capabilities and capacity. The Municipal Finance Management Act requires municipalities to maintain efficient, effective and transparent systems and implement proper financial record keeping. One of the key reforms spearheaded in this regard is the Municipal Standard Chart of Accounts (mSCOA). Implementation of mSCOA is information and communication technology intensive and thus expensive. A consequence of this is that many municipalities will not be able to achieve compliance by the compulsory implementation date of July 2017. Given the potential benefits associated with ensuring a national standard around financial reporting at the local government level, it is recommended that ring-fenced funding in respect of mSCOA implementation be made available for lesser-resourced municipalities and that technical assistance be provided to the most under-resourced municipalities to assist with change management.

2018/19 Technical Report

2018/19 Technical Report

The main purpose of this Technical Report is to explore how improving the efficiency of intergovernmental fiscal relations (IGFR) can assist national government, provinces and municipalities to stimulate urban development through prioritising public investments and interventions. If managed properly, fiscal reforms for urban development can bring about greater inter-regional equity and potential economic growth. While the focus of the Submission is on urban areas, the debate should not be an either/or choice between urban and rural development, as both exist in parallel throughout South Africa. The Commission is also interested in rural development as shown in previous submissions, as both rural and urban regions can contribute to national growth and poverty alleviation.